Q&A Recap #6

Your questions continue to be a great opportunity for all of us to learn, improve and spread some crypto wisdom along the way. So without further ado, let’s dive right in and recap some of the questions we received since last time.

@lveronica322 asks on twitter: What is Bitcoin halving?

Bitcoin halving is an event that marks the halving of the Bitcoin reward for mining new blocks. This means that the miners start receiving 50% fewer rewards (denominated in Bitcoins) for the transactions that they validate. This phenomenon occurs whenever 210,000 blocks get verified and validated, adding to the existing chain of blocks in the Bitcoin blockchain. With a block verification requiring an average of around 10 minutes, a total of 144 blocks can ideally be verified with a day, which amounts to four years to reach the milestone of 210,000 blocks.

This implies that the event occurs approximately every four years. Bitcoin halving, together with the general increase in the complexity of bitcoin’s cryptographic algorithms, ensures that the total finite supply of 21 million Bitcoins is not minted and circulated within a short time frame.

Empirical evidence has shown that there is a net increase in the short term and long-term prices of Bitcoin after halving. However, caution is advised, given the volatility of the market, plus various other dynamics could have an adverse impact on prices. No one can accurately predict what will happen.

For more information, read our opinion blog on Bitcoin halving.

Fadi on telegram asks: Is copy trading available on the eTorox exchange?

Not at the moment. We are currently focusing on building the infrastructure that will support the transition from traditional asset classes to crypto-assets.

Along the way, we will consider many different features, such as copy-trading and others, to see which can benefit the growth of our platform and overall adoption of crypto-assets.

Ariel on Telegram asks — Are you related to eToro?

Yes, eTorox is eToro’s crypto Exchange. eToro’s crypto offering also includes the eToro trading platform, on which you can buy cryptoassets, and the eToro Wallet, where you can buy crypto, store it, and exchange assets against the other leading cryptocurrencies and stablecoins available on the Wallet. eToro’s crypto offering supports our commitment to facilitating the evolution of tokenized assets. We believe that leveraging blockchain technology will enable us to become the first truly global service provider allowing everyone to trade, invest and save.

We’re always happy to hear from you, so don’t hesitate to send us your questions on whichever social channels you prefer: Twitter, Facebook, LinkedIn and Telegram.